Wednesday, March 29, 2006

Is the price of gas higher than ever?

No. Adjusting for inflation, the price of gas is nowhere close to it's all-time high in 1980.

In 1980, gasoline prices reached $1.35 per gallon. Now while that seems like nervana compared to the national gasoline price per gallon of $2.55 in the United States today, if adjusted for inflation since 1980, the current price of gas is just $0.95 a gallon in 1980 dollars.

If the price of gas reaches $3.64 a gallon anytime soon, then Americans will really have something to complain about. That is the price per gallon in 2006 that will equate to $1.35 in 1980.

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